Foreclosure Consequences - What are the Consequences of Foreclosure?

If you are facing foreclosure, then you are most likely wondering about the foreclosure consequences. Foreclosure consequences will vary from state to state, but there are general consequences of foreclosure which you need to be aware of.

Seven Foreclosure Consequences

Foreclosure Consequence #1. Finding a new home

The most obvious foreclosure consequence will be finding a new home. Many rental agencies will look at your credit score before they rent you a home or apartment. With a pending foreclosure, chances are, your credit is not very good. You will also need to come up with enough money for the first months rent, plus security deposit. Some may also ask for the last month's rent as well.

Foreclosure Consequence #2. Bad Credit Ratings

Your credit rating will also be another foreclosure consequence. If this is your only bad credit rating, then it is possible to reestablish your credit within two years.

Foreclosure Consequence #3. Trying to purchase another home in the near future

Once you have defaulted on your mortgage, it will take at least 5 years to be able to apply for another mortgage through Fannie Mae.

Foreclosure Consequence #4. Emotional Instability

Losing your home not only affects your credit score, but also may affect the relationships within the family as well as any relationships your children may have with the neighbor kids.

Foreclosure Consequence #5. Unrecovered Tax Bill

The lender may send you a tax bill in the amount of the sale of your house that they were not able to recover.

Foreclosure Consequence #6. Employment Issues

Often, employers will run a credit check on prospective employees to determine the financialy responsibility of the potential employee. Be prepared to explain your situation to this prospective employer.

Foreclosure Consequence #7. Storage Issues

If you have a lot of personal possessions, you may need to place them into a storage facility until you can find a home large enough for everything you own.